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Why Do You Need A Consultant?


By Lloyd M. Gordon
President, GEC Consultants, Inc.
Skokie, Illinois 60076

Some Reasons You May Need a Consultant  

  • You have just decided to enter the restaurant industry after years of debating the issue.
  • You are a great chef but know little about running a dining room in your new restaurant.
  • You think it will cost you about $100,000 to open a restaurant, but you’re not sure.
  • You like your menu but are not sure that it is priced correctly to bring in needed profits.
  • You already have a heavy sales volume but your costs are through the roof.
  • Competition is getting heavier and heavier cutting into your sales volume.

Consultants must be experts. They are problem oriented, excel in recognizing new or unsatisfactory situations, visualize creative ways to handle them and implement necessary changes if needed. Consultants are often thought of as people who "fix things." However, a foodservice consultant usually can offer help in planning, development and implementation of restaurant services.

These may include:

Developmental services
Concept planning
Market and feasibility studies
Proforma income statements
Financial structuring
Site analysis
Patron profiles
Theme development

Facilities design
Original layout kitchen, bar, storage, dining room
Equipment specifications
Preparation of equipment bids
Design coordination with architect
Food delivery systems
Approve equipment installation

Menu development and presentation
Menu conception, costing, pricing and layout
Recipe development and testing
Plating, portioning, and garnishing standards
Food merchandising
Wine and liquor list
Table top design
Banquet menu development

Staffing and training
Staffing requirements
Personnel training
Training manuals
Job descriptions
Operation manuals

Operation analysis
Procurement systems
Food purchasing specifications
Receiving procedures
Storage and issuing procedures
Food production procedures
Service standards and procedures

Other support services
Point-of-sale/technical system selection
Management information systems
Market planning
Public relations
Advertising
Promotions

The term restaurant consultant is a broad definition encompassing a wide variety of disciplines and areas of expertise. In my firm alone we have experts in concept development, design, financial sourcing, equipment selection, accounting and operations. While the types of consultants may vary widely, the selection process and client/consultant relationship are similar.

How Do consultants Get Paid?

There are many ways you can pay an outside consultant. When hiring a consultant, select the fee structure which enables the consultant to produce the best results at the lowest price. However, do not hire consultants solely based on cost. Being “penny wise and pound foolish” will lead you to “getting what you paid for”. For any case, a consultant will figure his/her fee based on anticipated hours necessary to complete the project at his/her hourly rates.

One method of paying a consultant's fee is to ask for a fixed fee. Ask the consultant to include in his proposal his/her estimated amount of time it will take to complete the project in hours and the hourly rates. For example, some firms will charge a flat fee, as we do for an Fact ‘N’ Act analysis, which takes from three to five hours.

Another method is to be quoted a fee on a standard time basis, with a sur-charge over certain designated hours if it is unclear as to the scope and time length of the project.

Typically, out-of-pocket and travel expenses are billed separately from professional fees and this should be indicated in the proposal. These expenses are for such items as transportation costs, lodging and meals and report production.

How To Limit a Consultant's Time

Keep in mind you are paying for the consultant's time. As a result, try not to waste his time by withholding information necessary to complete the project. A client who helps the consultant use his time wisely usually ends up with a superior work product at a lower price and in less time.

In summary, the consultant must be an analyst, an information source, a long-range planner, an unbiased observer, an educator, a link to the outside world, a sounding board, a psychologist,a diplomat and a shoulder to cry on.
 

Mr. Lloyd M. Gordon, President of GEC Consultants, Inc. has an MBA from the University of Chicago. He has concepted more than 390 restaurants and has been consulting for over 44 years. He helps people enter the restaurant industry, points the way to profitability, and helps keep them successful. To discuss "Why Do You Need A Consultant?" he can be reached at 847-674-6310.

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